Ebay doomsayers rejoice. Not.

[alcoforever]

Ebay stock reached a new all-time high today of $70.49.   After hours trading has pushed it to $70.62.

Is ebay doing something right or what?

[slippinjimmy]

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@alcoforever wrote:

Ebay stock reached a new all-time high today of $70.49.   After hours trading has pushed it to $70.62.

Is ebay doing something right or what?

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Yes they are, on a real roll these days.

The Street likes the highly rewarding divestitures, they love the Managed Payments implementation and long terms they very much buy into the slimmed down eBay that can concentrate on the core business.

eBay at the corporate level has always run on a no flash, just cash style. There is little to attract the speculators and traders and appeal more to long term investors who have consistently made lots of money holding eBay stock.

There is no direct connection between eBay's stock price and seller success but one thing I think for sure, as long as they are making money they will be around and the last thing that would be good for sellers would be if eBay had financial issues and was taken over by private equity.

[sakic92710]

I like how, just because you make a profit on the sale, that means the buyers pay the fees?  The buyer doesn't buy the item then pay extra to cover your fees.   lol

[postingid7659]

I came here to say this.  The stock price is high because the dollars are worth less, the company's actual value has not changed.  If we reverted to say, 1990 dollars, it would probably be around $7 a share. 

[postingid7659]

Probably because his Mayan calendar ended in 2012

[slippinjimmy]

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@sakic92710 wrote:

I like how, just because you make a profit on the sale, that means the buyers pay the fees?  The buyer doesn't buy the item then pay extra to cover your fees.   lol

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My buyers pay extra to cover my eBay fees.

[annadryl]

B-b-but They're making interest off of the sales tax of the shipping fees that they're holding for a week! Right?

[rosachs]

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@sakic92710 wrote:

I like how, just because you make a profit on the sale, that means the buyers pay the fees?  The buyer doesn't buy the item then pay extra to cover your fees.   lol

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If you determine your selling price properly, yes.   Profit is what is left after all the bills are paid.  Since I consider eBay fees to be a bill, those fees are deducted from gross sales, along with all the rest, to determine my actual, all-bills-paid profits.

This is business math 101 -- a class I actually stayed awake all the way thru!

-Bob.

[alcoforever]

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@annadryl wrote:

B-b-but They're making interest off of the sales tax of the shipping fees that they're holding for a week! Right?

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So what?   It is none of our business.   BTW, they might be making interest on the item sales tax as well?

[annadryl]

That was a joke... maybe not a good one... (sorry)

[darwen8]

Not for me !     Good till canceled , managed payments , deletion of condensed seller page AKA ...  ' Classic '  to more time consuming Seller Hub ..   All in all losing $ and more of a cluster .. 

[alcoforever]

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@annadryl wrote:

That was a joke... maybe not a good one... (sorry)

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Oops.   Sorry I didn't get it.   But it is kinda funny now that you mentioned it.

[chapeau-noir]

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@sakic92710 wrote:

I like how, just because you make a profit on the sale, that means the buyers pay the fees?  The buyer doesn't buy the item then pay extra to cover your fees.   lol

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You might be doing it wrong.

[forward-motion]

No sale, no money, no fees. The buyer is the one who pays the fees. AND you adjust your prices accordingly. 

[bargainnation]

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@alcoforever wrote:

Ebay stock reached a new all-time high today of $70.49.   After hours trading has pushed it to $70.62.

Is ebay doing something right or what?

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I am not an eBay doomsayers. I recognize eBay provides a valuable service to small resellers like myself as well as conglomerate or multi-national corporations and resellers or sellers who fall somewhere in between.

There is some but not a lot of correlation between a company's actual performance and its stock price even though that is repeatedly what is told/taught to the public.  For example, when a company lays off thousands of employees; cut employee benefits significantly or cut or eliminate dividends to common shareholders these or cost savings measures for a company. Yet this is great news for Wall Street and the company's stock in all likelihood will increase.

[rosachs]

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@alcoforever wrote:

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@annadryl wrote:

B-b-but They're making interest off of the sales tax of the shipping fees that they're holding for a week! Right?

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So what?   It is none of our business.   BTW, they might be making interest on the item sales tax as well?

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They do earn interest on the collected sales tax.  That tax is collected at time of purchase, but is not remitted to the state immediately, rather it's remitted on a scheduled basis.  Likely monthly, but that still means eBay could be earning interest on the collected sales tax for up to 30 days.

When I was selling thru my registered business, I earned interest on the collected sales tax for a full quarter the first year, and for a full year each year after that!  A whole year!!  That extra dollar or so interest earned for the entire year really helped turn around my bottom line!

These types of 'float' have always been present in modern financial systems.  It's not something eBay came up with... it's been around for a very long time.

-Bob.

PS: if you get a income tax refund, you've effectively loaned that money to the Feds for up to a year's time.  Each check, a bit of your money is sent to the Feds.  They do with it what they will, until you file your annual personal income tax return.  Then you get back, without interest, anything in excess of what you actually owed.  So remember that the next time you get so excited that your getting $2000 back from your income taxes.... that's $38+ per week that you loaned to the government at zero interest.

Float happens.